slagrasta

Game

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I can't speak for the devs personally, but this is customarily done with a vertex shader, as explained in this video (just a random google result, I'm not affiliated with this guy in any way)

The short version is that the world probably isn't curved (since, as you pointed out, collision would be more complicated and costly) but rather the shader bends your perception of the world like a funhouse mirror. Hope that helps!